Working Paper Revision
Macroeconomic Implications of Uniform Pricing
Abstract: We compile a new database of grocery prices in Argentina. We find uniform pricing both within and across regions—i.e., prices almost do not vary within stores of a chain. In line with uniform pricing, prices in stores of chains operating in one region react to changes in regional employment, while prices in multi-region chains do not. Using a quantitative regional model with multi-region firms and uniform pricing, we find a one-half smaller elasticity of prices to a regional than an aggregate shock. This result highlights that some caution may be necessary when using regional shocks to estimate aggregate elasticities.
Keywords: Uniform Pricing; Price Dispersion; Regional Economics;
JEL Classification: D40; E30; L10; R10;
https://doi.org/10.20955/wp.2019.024
Status: Published in American Economic Journal: Macroeconomics
Access Documents
File(s):
File format is application/pdf
https://s3.amazonaws.com/real.stlouisfed.org/wp/2019/2019-024.pdf
Description: Full text
Authors
Bibliographic Information
Provider: Federal Reserve Bank of St. Louis
Part of Series: Working Papers
Publication Date: 2021-09-01
Number: 2019-024
Note: Publisher DOI: https://doi.org/10.1257/mac.20210172
Related Works
- Working Paper Revision (2021-09-01) : You are here.
- Working Paper Revision (2021-05-11) : Macroeconomic Implications of Uniform Pricing
- Working Paper Revision (2021-01-29) : Macroeconomic Implications of Uniform Pricing
- Working Paper Revision (2020-07-22) : Macroeconomic Implications of Uniform Pricing
- Working Paper Revision (2020-07-15) : Macroeconomic Implications of Uniform Pricing
- Working Paper Revision (2020-05-12) : Macroeconomic Implications of Uniform Pricing
- Working Paper Original (2019-09-18) : Macroeconomic Implications of Uniform Pricing